“Italian problems could theoretically spark a systemic crisis in the eurozone.”

Holger Schmieding, chief economist at Berenberg

If the Italian economy flatlines, a Greek-style bailout will be required to save the country – and the Eurozone – from ruin.

Tsvetoslav Tsonev, an economist at Fathom Consulting, believes the banking crisis may eventually lead to Italy exiting the European Union.

He said: “Concerns about Italy’s constitutional referendum and its implications are weighing on markets. They are right to be concerned.

“If the outcome results in another economic downturn, causing sovereign bond yields to spike, it could prove to be the straw that broke the camel’s back, triggering a banking crisis and eventually Italy’s exit from the euro area.”

Brexit aftershocks: Who's next to leave the EU?

After Britain voted to leave the EU, we look at which European countries want to hold their own EU referendum.

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Express

Frexit, Nexit or Auxit? Who will be next to leave the EU

But it’s not all doom and gloom as Britain’s pound got an inadvertent boost from the result.

Sterling has soared half a cent to its highest level since September meaning Brits travelling to Europe this Christmas will get more bang for their buck.